Spain formally asks for bank aid

The government of Spanish Prime Minister Mariano Rajoy has asked for help to clean up its banking system.

NEW YORK (CNNMoney) -- The Spanish government made a formal request to the Eurogroup on Monday for loans to bailout its troubled banking sector.

"I have the honor to write to you, in the name of the Spanish government, to formally request financial assistance for the recapitalization of the Spanish banks that require it," wrote Economy Minister Luis de Guindos, in a letter to Eurogroup president Jean-Claude Juncker.

Investors are also worried about how Spain's problems will impact Italy. The fear is that bailing out Spain would drain the euro area's crisis resources and leave Italy without a safety net.

The leaders of the four biggest eurozone economies agreed Friday on a plan to boost economic growth in the troubled currency union. Without going into detail, the leaders said they agreed on a set of growth-enhancing policies equal to about €125 billion, or 1% of eurozone gross domestic product.